Price-to-Cash-Flow Calculator
Valuation on operating cash flow - harder to massage than earnings.
Also available in German: KCV-Rechner (Kurs-Cashflow-Verhältnis) →
Inputs
Share price
Also called: Stock price, market price
Where to find it: Any finance site (Google/Yahoo Finance) — the current trading price per share.
How to derive: Set by the market; just enter the current price per share.
Operating cash flow per share
Also called: CFPS
Where to find it: Operating cash flow (cash-flow statement) ÷ shares.
How to derive: Operating cash flow ÷ shares outstanding.
Result, live
Compare P/CF with P/E: when P/CF is clearly lower, earnings quality is usually good (the cash actually arrives).
The price-to-cash-flow ratio (P/CF) values a stock against the operating cash it actually generates — money that is far harder to massage than reported earnings. This calculator divides share price by operating cash flow per share in seconds and shows whether that cash stream looks cheap or expensive.
How the formula works
Operating cash flow per share is the cash a business produces from its day-to-day operations, divided by shares outstanding. The P/CF ratio sets the price against that cash — a lower number means you pay less for each euro of cash coming in.
Example: A stock trades at $60 and generates $7 of operating cash flow per share. P/CF = 60 ÷ 7 = 8.6. Below 10 — a solid cash-flow valuation; you pay under nine years of current cash.
How to read the result
- Below 10 — a solid cash-flow valuation; the price is well backed by real cash.
- 10 to 16 — around the market average.
- Above 16 — expensive on cash flow; you are paying up for expected growth.
What to watch out for
- Compare it with the P/E. If P/CF sits well below the P/E, earnings quality is usually good — the cash really arrives.
- Capex is ignored. Operating cash flow comes before investment; capital-heavy firms need free cash flow too.
- One year can mislead. Working-capital swings jolt cash flow; look at a multi-year trend.